Crypto Currency - The perfect excuse to Crash the Economy | |
Anonymous Coward User ID: 75794136 United States 12/18/2017 07:27 PM Report Abusive Post Report Copyright Violation | I think your wrong and here's why. As it becomes harder and harder to export inflation as a balance to all the printing, the dollar is looking for a place to neuterize all of the inflation. People that have money to invest in the cryptos are the ones that could rise inflation to quickly. They can only pump the market so quick as to seem like they are juicing it. All money that is created is based on the leverage afforded to those assets. Money that is created from production (jobs) is the other side of that creation (disposable income). Those two totally different kinds of money creation and types, are always fighting and looking for a balance. Electronic money is created without human labor and is deflationary and labor money created through production is inflationary. Unless the electronic money gets into the velocity, then it becomes inflationary. If they can't have rising asset prices, they can't print as the leverage ratio is disrupted. As prices and the value of leveraged assets goes up they can print without affecting that leverage ratio, it stays the same. If the asset price deflates the leverage ratio goes up on it's own with basic math. I believe that cryptos are a stop gap measure to direct all that potentially inflationary money into it. Otherwise if that same type of money (disposable income) was within the velocity of money, inflation could not be held at a controlled rate and the death of the dollar of which they, the TPTB hold the most of, would become less valuable. They are trying to maintain the worldwide value and control of the dollars that they possess, by allowing the money that could make their dollars less valuable flow into cryptos. |
Anonymous Coward User ID: 17722578 United States 12/18/2017 07:47 PM Report Abusive Post Report Copyright Violation | |